Taiwan Heat Pump Market Size and Share
Market Overview
| Study Period | 2019 - 2030 |
|---|---|
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 195.90 Million |
| Market Size (2030) | USD 259.40 Million |
| Growth Rate (2025 - 2030) | 5.78% CAGR |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
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Taiwan Heat Pump Market Analysis by Mordor Intelligence
The Taiwan Heat Pump Market size is estimated at USD 195.90 million in 2025, and is expected to reach USD 259.40 million by 2030, at a CAGR of 5.78% during the forecast period (2025-2030). The expansion is anchored in Taiwan’s net-zero 2050 roadmap, government subsidies that rebate up to 30% of equipment costs, and stricter Minimum Energy Performance Standards that now cover 25 product categories including heat pumps. Air-source units dominate because they suit the island’s mild winters, while investment in shallow geothermal drilling and seasonal energy storage is lifting ground-source adoption. Semiconductor and electronics manufacturers—seeking precise, low-carbon thermal control—have become powerful demand drivers, and retrofits of existing apartment blocks keep residential volumes high. Yet installation cost inflation, shortage of trained technicians, and tight urban spaces temper near-term uptake, pressing suppliers to simplify system design and strengthen installer training networks. Digital sales channels, although still niche, are scaling quickly as consumers research efficiency ratings online, compare lifetime costs, and book turnkey installation from a single portal.
Key Report Takeaways
- By type, air-source systems led with 68% revenue share in 2024; ground-source units are projected to expand at a 5.5% CAGR to 2030.
- By rated capacity, units below 10 kW captured 40% of the Taiwan heat pump market share in 2024, while the 50–100 kW class is forecast to grow at a 5.6% CAGR.
- By application, space heating accounted for 42% of the Taiwan heat pump market size in 2024 and domestic hot-water units are advancing at a 5.7% CAGR through 2030.
- By end-user, residential customers held 55% of sales in 2024, whereas industrial installations record the fastest projected CAGR at 5.8% to 2030.
- By installation type, retrofit projects represented 65% of 2024 demand; new-build deployments are set to rise at a 5.4% CAGR under green-building codes.
- By sales channel, distributor–installer networks retained 70% share in 2024, yet e-commerce bookings are growing at 5.2% CAGR as buyers seek price transparency.
Taiwan Heat Pump Market Trends and Insights
Drivers Impact Analysis
| Driver | (≈) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Growing use of heat pumps in industrial waste-heat recovery | +1.8% | Hsinchu, Taichung, Kaohsiung science parks | Medium term (2–4 years) |
| Policy incentives and tighter energy standards | +1.2% | Nationwide, public-sector buildings | Short term (≤ 2 years) |
| Rapid urbanisation and new construction | +0.9% | Taipei, New Taipei, Taichung corridors | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
Growing Use of Heat Pumps in Industrial Waste-Heat Recovery
Semiconductor fabs, textile dye houses, and food processors increasingly deploy high-temperature heat pumps to reclaim low-grade waste heat between 100 °C and 150 °C, cutting boiler fuel and CO₂ simultaneously. Bottom-up studies calculate 89.66 petajoules of recoverable industrial heat annually, 61.8% of which falls squarely in the optimum temperature band for modern compressors[1]Nien-Hsuan Hsieh, “TSMC Publishes 2024 Climate & Energy Progress,” TSMC Newsroom, Feb 10 2025, tsmc.com. Successful pilots at TSMC trimmed electricity by 830 GWh in 2023, and textile mills trialling 1 MW units cite 30-month paybacks. Suppliers respond with ammonia or trans-critical CO₂ systems able to deliver 120 °C process water, creating a new premium segment within the broader Taiwan heat pump market.
Policy Incentives and Tighter Energy Standards
The Energy Administration Act amendment of July 2024 enhanced the subsidy pool to USD 30 million and broadened EEWH (Ecology, Energy saving, Waste reduction, Health) certification coverage[2]Chia-Wei Liu, “Amended Energy Administration Act Passed Third Reading,” Enviliance, Jul 08 2024, enviliance.com. Public tenders for schools and hospitals now stipulate heat-pump-ready plant rooms, while government ESCO programs financed 875 new projects in 2024 alone. Mandatory energy labels on residential water heaters have nudged consumers toward COP ≥ 3.5 models, driving up average system efficiency and average selling price.
Rapid Urbanisation and New Construction
Between 2025 and 2030, Taiwan plans 180 000 new housing units in transit-oriented clusters. Architects specify variable-speed air-source equipment to meet green-building credits, while developers of mixed-use towers pre-plumb for shared hot-water loops powered by central heat-pump plants. Kaohsiung’s city-level goal of 2 GW solar by 2030 ties onsite PV arrays with electrically driven heating and cooling, further stimulating demand[3]Mei-Yun Chen, “Kaohsiung Achieves 20.8% GHG Cut,” Kaohsiung City Government Gazette.
Restraints Impact Analysis
| Restraint | (≈) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Installation complexity and high upfront cost | -0.8% | Dense districts of Taipei & New Taipei | Short term (≤ 2 years) |
| Limited public awareness outside metros | -0.4% | Rural and second-tier towns | Medium term (2–4 years) |
| Source: Mordor Intelligence | |||
Installation Complexity and High Upfront Cost
Retrofit projects in 30-year-old concrete apartment blocks need crane lifts, vibration isolators, and seismic bracing, adding 15–20% to the invoice. A shortage of licensed refrigeration technicians—estimated gap of 3 000 installers—causes scheduling bottlenecks and premium labour rates. Universities have doubled enrolment in HVAC programs but most graduates choose high-tech plant maintenance roles, leaving residential work understaffed[4]Chin-Yi University of Technology, “HVAC Workforce Gap Study,” NCUT Bulletin, Apr 12 2025, ncut.edu.tw.
Limited Public Awareness Outside Metros
A 2024 consumer survey by local NGO Green Citizen showed only 38% of rural homeowners recognise heat-pump water heaters as distinct from conventional electric models. Misleading efficiency claims from low-cost importers erode trust, prompting the Bureau of Standards to mandate QR-code verification on the energy label from 2026. Utility bill-comparison apps and installer roadshows are starting to close the knowledge gap, yet awareness remains a brake on volume growth in smaller municipalities.
Segment Analysis
By Type: Air-Source Dominance Meets Geothermal Momentum
Air-source units held 68% of sales in 2024, reflecting favourable mid-season temperatures and lower permitting hurdles. Ground-source systems, though only 11% by value, are scaling as drilling costs fall and the Central Geological Survey confirms 40 GW of shallow geothermal potential along the Datun volcanic belt. Hybrid variants that combine roof-mounted air coils with borehole loops are appearing in commercial campuses where cooling loads peak in summer and re-injectable heat is needed in winter, supporting stable year-round COP.
Demand for ground-source equipment spikes around new research parks in Tainan where seasonal energy storage trials show a 35% reduction in peak-time electricity draw, helping grid operator Taipower shave reserve-margin needs. Suppliers now bundle vertical borehole packages with variable-speed pump kits to cut onsite integration time. Consumers’ primary hesitation remains the drilling premium, yet tax credits covering 10% of borehole cost—introduced in January 2025—have shortened payback to under seven years for mid-rise office blocks, positioning geothermal as the fastest-growing slice of the Taiwan heat pump market.
Note: Segment shares of all individual segments available upon report purchase
By Rated Capacity: Small Systems Lead, Mid-Scale Rising
Systems below 10 kW represented 40% of unit shipments in 2024 because apartments under 100 m² rarely require larger output. Manufacturers have miniaturised outdoor cabinets to fit 0.3 m² balconies, enabling residents of Taipei high-rises to swap resistance heaters for compact heat-pump water heaters.
The 50–100 kW bracket, however, is where growth accelerates. Industrial energy managers prefer modular 60 kW CO₂ packs that cascade up to 480 kW, matching incremental production-line expansions. Textile dyeing lines in Taichung’s Dali district installed eight such modules in 2024, cutting steam demand 28% and recouping capex in 32 months. Variants exceeding 100 kW still sell largely as custom-engineered plant room projects, but standardisation trends suggest future cost compression that may shift market share toward larger blocks, further broadening the Taiwan heat pump market.
By Application: Heating Today, Hot Water Tomorrow
Space-heating applications dominated with 42% revenue in 2024, largely in northern hill regions where January lows dip below 10 °C. Two-pipe reversible chillers handle shoulder-season cooling and winter heating, earning bonus credits under EEWH rules.
Hot-water generation shows sharper momentum. Hospitality chains such as Regent Taipei replaced gas boilers with 250 kW air-to-water heat-pump sets, slicing annual utility spend by USD 190,000 and meeting corporate ESG targets. Residential buyers benefit from power-company rebates of TWD 3,000 per unit, driving brisk sales of 190-litre split systems. Software dashboards that visualise heat-pump yield versus photovoltaic output entice homeowners to synchronise daytime water heating with rooftop solar, reinforcing adoption and enlarging the Taiwan heat pump market size for this niche.
By End-User Vertical: Residential Base, Industrial Upside
Residential homeowners absorbed 55% of total shipments in 2024. Replacement demand stays resilient because energy prices rose 11% year-on-year and apartments now bundle heat-pump water heaters to hit green-building thresholds. National banks offer 10-year, 1.8% green-home loans covering equipment, alleviating upfront burden.
Industrial demand climbs fastest as chipmakers in Hsinchu Science Park need 24/7 precise temperature control of ultrapure water loops; high-lift compressors feeding plate heat exchangers deliver ±0.2 °C stability. Food processors deploy 90 °C ammonia heat pumps to pasteurise beverages, displacing fossil steam. With waste-heat streams abundant, process integration drives system COP above 7, making industrial decarbonisation a structural tailwind for the Taiwan heat pump market.
By Installation Type: Retrofit Dominance Signals Market Maturity
Retrofits represented 65% of 2024 revenue because much of Taiwan’s housing stock dates from the 1990s boom. Lightweight monoblock replacements slot into legacy air-conditioner openings, simplifying permits. Energy-service contractors guarantee 20-year performance and finance retrofits via shared-savings contracts, widening access for condominium associations with limited capital.
New-build projects rise rapidly. Since July 2024, public buildings costing over TWD 50 million must achieve at least EEWH-Silver, effectively mandating heat-pump HVAC. Developers integrate centralised geothermal loops in mixed-use tech parks to pre-temper incoming ventilation air, trimming chiller tonnage and cushioning grid peaks—a synergy that further anchors the Taiwan heat pump market.
Note: Segment shares of all individual segments available upon report purchase
By Sales Channel: Traditional Networks Face Digital Disruption
Distributor–installer alliances held 70% share in 2024 because system complexity and warranty requirements encourage professional sales. Regional wholesalers stock multi-brand lines and coordinate crane logistics in congested neighbourhoods.
Platforms such as PChome list energy-label data, side-by-side COP comparisons, and package labour into fixed-price bundles. Urban millennials appreciate click-to-install convenience, and manufacturers view online reviews as rapid feedback loops for product tweaks. Hybrid models are emerging: buyers lock in hardware online, then schedule site surveys with certified installers, blending digital reach with local service depth and expanding the Taiwan heat pump market’s total accessible audience.
Geography Analysis
Northern Taiwan generates the highest demand because Taipei’s cooling-dominated offices switch to reversible heat-pump chillers for year-round efficiency. District governments now subsidise 10 % of project cost if COP exceeds 3.6, driving continuous replacement cycles.
Central Taiwan, anchored by Taichung, is the industrial growth pole. Textile, precision-machinery, and battery plants retrofit process heat loops, using 50–100 kW modules that exploit plentiful waste-heat streams. Local utility Taipower offers demand-response rebates that reward heat-pump participation, improving ROI.
Southern clusters around Tainan and Kaohsiung benefit from abundant solar. Pairing photovoltaic over-generation with daytime heat-pump charging of stratified hot-water tanks converts curtailed PV into stored thermal energy, lowering curtailment payments and feeding district hot-water grids in student dormitories. Ground-source pilots in Tainan’s Shalun Smart Green Energy Park reveal 35% reductions in building-cooling peak load, underscoring regional potential.
Mountainous counties such as Nantou exhibit niche demand, installing high-lift air-source models capable of defrost at 0 °C for eco-resorts. Offshore Penghu islands test seawater heat pumps as part of micro-grid experiments, potentially spawning exportable know-how. This geographic mosaic ensures that the Taiwan heat pump market maintains balanced, island-wide growth rather than relying on a single conurbation.
Competitive Landscape
The top five vendors—Daikin, Mitsubishi Electric, LG, Rechi, and Tianqing—lead the market, also leaving ample room for challengers. Japanese and Korean multinationals leverage advanced inverter drives and R32-ready portfolios, whereas local firms trade on faster lead times and custom coil geometries suited to tight balconies.
Technology leadership now hinges on low-GWP refrigerants and smart-control ecosystems. Daikin’s 2024 launch of R454B-based residential units cut GWP 75% versus R-410A and integrated Wi-Fi modules that sync with demand-response platforms. Rechi’s proprietary motor winding delivers 5 % higher part-load efficiency, winning OEM orders from European brands seeking cost-effective subassemblies.
Strategic collaborations intensify. Daikin and Rechi formed a compressor JV to serve India, but the deal also secures Rechi first-hand access to Daikin’s scroll IP, raising local performance benchmarks. LG’s Global Heat Pump Consortium pools cold-climate data from Alaska and Trondheim, accelerating defrost-algorithm refinement that filters back to Taiwanese SKUs. Domestic challenger DKSH uses its award-winning low-carbon distribution centre to pitch full-service logistics to foreign brands lacking on-island warehousing, tightening its grip on the premium import channel.
Taiwan Heat Pump Industry Leaders
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Stiebel Eltron GmbH & Co. KG
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Viessmann Climate Solutions SE
-
Glen Dimplex Group
-
WaterFurnace International Inc.
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PHNIX Eco-Energy Solution Ltd.
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- January 2025: Daikin Malaysia, Hotai Development, and LEADING Electric & Machinery set up an air-handling-unit JV in Taiwan to tailor cleanroom HVAC for chip fabs. The move secures local content for semiconductor clients and locks in long-term service contracts.
- October 2024: Taipower, Taiwan Cogeneration, Baseload Power Taiwan, and GreenFire Energy signed an MoU to exploit Datun Mountain geothermal resources using closed-loop systems. Success will expand ground-source potential for the Taiwan heat pump market and diversify Taiwan’s renewable portfolio.
- September 2024: LG Electronics convened the first Global Heat Pump Consortium in Seoul, linking R&D clusters from Alaska to Norway. Insights on frost-resistant heat exchangers feed into products suited for Taiwan’s high-humidity winters.
- April 2024: DKSH Taiwan won Gold at the ESG Sustainability & Logistics Award for a distribution centre that operates heat pumps powered by rooftop solar, showcasing real-world OPEX savings to prospective HVAC clients.
Research Methodology Framework and Report Scope
Market Definitions and Key Coverage
Our study defines the Taiwan heat pump market as all factory-built systems that extract ambient heat from air, water, or shallow ground and elevate it via electrically driven vapor-compression cycles to deliver space conditioning or domestic hot water across residential, commercial, industrial, and institutional premises.
Scope exclusion: gas-fired absorption and adsorption heat pumps, window AC units with heat pump mode, and chiller-based district energy loops are not counted.
Segmentation Overview
- By Type
- Air-Source
- Water-Source
- Ground-Source (Geothermal)
- Others (Hybrid, Exhaust-Air)
- By Rated Capacity (kW)
- < 10 kW
- 10-20 kW
- 20-50 kW
- 50-100 kW
- > 100 kW
- By Application
- Space Heating
- Space Cooling
- Domestic / Sanitary Hot Water
- Others (Pool Heating, Process Heating, and Cooling)
- By End-User Vertical
- Residential
- Commercial
- Industrial
- Institutional
- By Installation Type
- New Build
- Retrofit / Replacement
- By Sales Channel
- Direct (OEM to End-User)
- Distributor / Installer Network
- E-Commerce
Detailed Research Methodology and Data Validation
Desk Research
Mordor analysts first mapped the demand pool through publicly available data sets such as Taiwan's Bureau of Energy appliance registration, customs HS-code imports, and construction completion statistics, supplemented by quarterly building permit releases from the Ministry of the Interior. Trade association white papers from the Taiwan Refrigeration and Air-Conditioning Industry Association, scholarly journals covering low-carbon HVAC, and patent trends accessed through Questel gave insight into technology uptake. Company filings, investor presentations, and reputable business press helped trace selling prices and channel margins. The sources listed illustrate the breadth of material consulted; many additional documents were reviewed to cross-check figures and terminology.
Primary Research
Telephone interviews and online surveys with installers, distributor networks, facility engineers at semiconductor fabs, and energy efficiency officials across North, Central, and Southern Taiwan validated unit mix, replacement cycles, and subsidy pass-through. These conversations filled data gaps on retrofit share and typical seasonal performance factors before the model was finalized.
Market-Sizing & Forecasting
A top-down reconstruction started with 2024 stock and shipment estimates derived from import records and local assembly volumes, which are then multiplied by sampled average selling prices to reach the 2024 value baseline. Bottom-up spot checks, manufacturer shipment disclosures and installer invoice samples, were used to sense-check totals and adjust channel mark-ups. Key variables feeding the forecast include new apartment completions, electricity to LPG price spreads, MEPS tiers, semiconductor clean room floor additions, and the MOEA subsidy budget trajectory. Multivariate regression combined with scenario analysis projects how these drivers influence annual sales; results are aligned with expert consensus on efficiency uptake and learning curve price erosion. Where bottom-up gaps remained, conservative share assumptions were applied and highlighted for review.
Data Validation & Update Cycle
Before sign-off, outputs pass a two-analyst variance check against independent metrics such as power company heat pump tariff enrollment and building energy use surveys. The report is refreshed each year, with interim updates triggered by material policy or price shocks; a final sense check takes place immediately prior to delivery.
Why Our Taiwan Heat Pump Baseline Commands Reliability
Published estimates often diverge because each firm chooses its own product mix, performance thresholds, and update cadence.
Key gap drivers include: some publishers include only ductless units or focus on air to air technology, others apply aggressive subsidy continuation scenarios, and a few translate volumes using unverified average prices or outdated exchange rates, whereas Mordor ties every assumption to traceable variables and revisits them annually.
Benchmark comparison
| Market Size | Anonymized source | Primary gap driver |
|---|---|---|
| USD 195.9 million (2025) | Mordor Intelligence | - |
| USD 185.7 million (2024) | Regional Consultancy A | Ductless scope only; no industrial usage captured |
| USD 510 million (2024) | Trade Journal B | Counts air to air units plus packaged HVAC hybrids; ASP inflated by retail mark-ups |
These comparisons show that while figures vary, Mordor's disciplined variable selection, transparent adjustments, and yearly refresh deliver a balanced baseline that decision makers can reproduce and stress test with confidence.
Key Questions Answered in the Report
1. What is the current value of the Taiwan heat pump market?
The market was worth USD 195.9 million in 2024 and is on track to reach USD 259.4 million by 2030.
2. Which heat pump type sells best in Taiwan?
Air-source units lead with 68% share because they fit the island’s mild climate and require no drilling.
3. How fast are industrial heat-pump installations growing?
Industrial demand is expanding at a 5.8% CAGR thanks to semiconductor, textile, and food processors seeking waste-heat recovery.
4. What is the biggest barrier to faster adoption?
Installation complexity and a shortage of certified technicians push up upfront costs, slowing some retrofit projects.
5. Are subsidies available for homeowners?
Yes, government programs refund up to 30% of equipment costs and utilities offer bill credits for high-efficiency models.
6. Which sales channel is gaining momentum?
E-commerce platforms are growing at 5.2% CAGR as consumers embrace online research, fixed-price bundles, and remote scheduling
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